University Hospital of North Staffordshire has revealed a dramatic deterioration in its finances from a predicted surplus of £2m to a £23.8m deficit by the end of 2012-13.
This comes after it revealed director of finance John Maddison has left his post at the trust after 11 months “to pursue other opportunities closer to his home in County Durham”.
The £440m-turnover trust hopes to be given £14m in “external support” to bring the year-end deficit down to £9.8m.
By October the trust had overspent by £21.4m on its operating expenses. It blamed this on a 15 per cent rise in accident and emergency attendances and non-elective admissions.
The trust has moved into a new private finace initiative hospital is part way through a long-term strategy to reduce the number of acute beds. However, an increase in demand has forced it to keep buildings and 130 extra beds open, staffed by costly agency staff.
These pressures have also meant the trust has failed to deliver on its planned quality, innovation, productivity and prevention schemes. So far the trust has only identified savings of £19.9m on its QIPP target of £22.2m.
After the trust moved into the new hospital, its PFI unitary payments increased from a monthly £3.7m in April to £4.2m in September.
Pay costs, excluding redundancy, are also £3.6m higher than planned at £24.9m a month.
The trust is hoping to negotiate extra funding as a result of increased activity from the overnight closure of the nearby Mid Staffordshire Foundation Trust A&E department.
It has also started discussions with clinical commissioning groups and the Midlands and East strategic health authority cluster regarding extra income to support the high costs of over-performance against its non-elective plan. Under payment by results this is only paid at a 30 per cent marginal rate.
North Staffordshire chief executive Julia Bridgewater said she was “extremely disappointed” by the financial performance after the trust had delivered against its financial plans for the last seven years.
“Mr Maddison has worked extremely hard over the last eleven months to manage a very challenging financial agenda,” she added.
Board papers and information supplied to HSJ